(Newswire.net — March 5, 2020) — It’s tax season again, which means you might have to deal with filing back taxes. If you have back taxes to file, there are a few things of which you should be aware. First, filing your tax returns can be the quickest way out of any back-tax trouble. However, you’ll want to make sure you’re protected in the process. Getting out of back-tax issues isn’t always as simple as just filing your tax return. But back tax filing is hugely important if you want to ensure that the IRS stays out of your business. Keep reading for what you should know about filing back taxes.
How Do You Get Back Taxes?
When you owe back taxes, you owe money due in taxes from a previous year. You may have back tax payments due to intentional or unintentional reasons. You can have back taxes at the federal, state, or local levels. When you have back taxes, you accumulate interest and penalties.
Why Do I Owe Back Taxes?
You could owe back taxes for several reasons, including:
- Filing a tax return but failing to pay the taxes due
- Failing to report all income you earned during the tax year
- Neglecting to file a tax return for the year
If you don’t have the means to pay them, back taxes can be a severe issue.
What If I Don’t Pay Back Taxes?
Not filing or paying back taxes can be a severe issue. In some cases, the IRS can seize your property, assets, or place liens on your property. The IRS can also place a federal tax lien on your property. A federal tax lien informs other creditors of the taxing authority’s legal right to your assets and property.
The IRS can also garnish your wages or levy your financial accounts. If your taxes still go unpaid, the IRS can use a tax levy to seize your assets to collect the money you owe legally.
How Do I File Back Taxes?
There are a few things you can and need to do when filing back taxes. It’s important to remember that it’s not too late to file back taxes. However, the longer you wait, the more you’ll end up owing the IRS. The smart thing to do is file now, so you don’t have to pay later.
To File Back Taxes, Gather Your Past Tax Documents
When filing back taxes, it’s crucial to have W-2s and other tax documents from the years you didn’t file. The IRS can give you copies of your tax documents for free if you’re missing any. Additionally, if you have back taxes to file, your employer can also send you copies of your W-2s. However, depending on how long it’s been, not all companies will have your old W-2s. Additionally, there could be a fee in requesting old tax documents to file back taxes.
Request Missing Tax Forms
You can request any tax documents from the last ten years from the IRS. All you have to do to request back taxes is fill out Form 4506-T. You can use this request for transcript of tax return form to request:
- W-2s
- 1099s
- 1098s
You won’t receive a duplicate of the original form. However, the IRS will give you a transcript of all the information you need to file back taxes. Remember that the IRS can take up to 45 days to process your request. Therefore, the sooner you get on filing back taxes, the better.
Hire a Professional to File Your Back Taxes
In many cases, it’s beneficial to hire an experienced tax professional to file back taxes. Platinum Tax Defenders has years of experience helping clients file back taxes. The expert team at Platinum Tax Defenders can also help with paying back taxes. An experienced tax resolution professional can help you deal with the IRS down the road. When filing back taxes, a tax professional can also help you ensure you’re compliant with tax rules and regulations. If you’re searching for a tax professional, look for someone with extensive experience in filing back taxes. A tax professional can also help you handle incomplete tax documentation. Tax professionals are also good at advocating for you or negotiation with the IRS if need be.
Can I Collect Refunds on Back Taxes?
Many back tax filers are entitled to tax refunds. However, there are strict time limits for refunds, audits, and debt collection. Typically, you have three years from the date your tax return was due before your refund expires. However, if you owe back taxes, any refunds will typically go toward paying off your debt.
File Back Taxes, Then Pay Back Taxes
Hiring a tax professional is helpful when you have back taxes to owe. One thing that may result from filing back taxes is you’ll owe money to the IRS. A tax professional can help you create a plan for paying off your tax debts if you owe the IRS money. You may also want to plan how to protect yourself from an IRS investigation. In the case of an IRS investigation, a tax professional can be beneficial.
How Can I Pay Back Taxes?
The IRS has many options for paying back taxes. You can set up an Installment Agreement, in which you pay back taxes in an affordable monthly payment. Additionally, you can ask the IRS for an Offer in Compromise. With an Offer in Compromise, you agree to pay back less than you owe to the IRS. The experts at Platinum Tax Defenders have years of experience helping clients pay back taxes to the IRS.
How Far Back Can I Go To File Back Taxes?
The IRS can typically only take action on any uncollected tax payments if 10 or more years have passed. However, the 10 years doesn’t begin when you neglect to file your return. The 10 years starts when the IRS notices your missing return. Once the clock starts, you have a limited time frame within which to act. If you don’t act quickly, you may be at risk for civil or criminal penalties.
Additionally, it’s important to remember that the IRS will only allow you to collect on tax refunds owed to you within the last three years. If the IRS owes you a refund from four years ago or later, you forfeit the rights to that money. Instead, your money becomes property of the U.S. Treasury.
Get Help With Back Taxes
If you don’t know if you owe back taxes, call the experts at Platinum Tax Defenders. There are several payment options available to get your taxes straight. You should choose whatever works best for your financial situation. Some payment options include:
-Credit card payments
-Check
-Money order
-EFTPS
-Electronic withdrawal
If you can’t afford to pay back the IRS what you owe, call a tax professional immediately.
Don’t Delay, File Back Taxes Today
The experts at Platinum Tax Defenders can help you file back taxes, so you don’t owe more than you already do. If it’s been a while since you filed taxes, call the professionals at Platinum Tax Defenders today. For more information, visit www.platinumtaxdefenders.com. The expert team of tax resolution experts, tax attorneys, enrolled agents, and CPAs can help you can back on track. Platinum Tax Defenders is currently offering free consultations to new clients. Call today for your appointment.